I think that it is important for investors to have a “waterfront property”. That’s where the long term value will be in rural and vacation areas.
In terms of value:
- First, something with a good view on a larger lake with access to other lakes,
- second, something on a smaller lake,
- third, something on a river with access to a larger lake system,
- fourth, overlooking with a view of a smaller water body, like a large pond or very small lake.
Naturally, that’s all about “location, location, location”.
The next issue is the building and what you will find is that there are some real bargains for properties in remote areas with good buildings (which are overbuilt for the location). They can be somewhat tempting, but over longer periods of time: 5, 10, 15, 20 years, the waterfront properties will substantially outperform them.
If you are trying to rent out a property on Air B&B, you will find waterfront easy to rent and occupied to capacity. There is a whole additional season for snowmobilers if you have something close to one of the trails.
Financing is available more easily to assist with the purchase of a waterfront property, often at slightly lower rates than isolated properties. The mortgagee will believe that there’s less risk.
Brian Madigan LL.B., Broker